Inflow of overseas workers’ remittances registered a decline to clock in at $2.03 billion in July 2023, a decrease of 7.3% on a month-on-month basis when compared to $2.2 billion in June 2023, showed data released by the State Bank of Pakistan (SBP) on Thursday.
On a yearly basis, the monthly inflow of remittances registered a decline of 19.3%, as they stood at $2.51 billion in the same month of the previous year, data showed.
The decrease in remittances, a vital source of foreign exchange, is a concern for the cash-strapped country.
Experts attributed the decline to seasonal factors as remittances historically post a decline after Eid season.
Breakdown of remittances
Overseas Pakistanis in Saudi Arabia remitted the single largest amount in July 2023 as they sent $486.7 million during the month. However, this was nearly 16% lower than the $577.1 million sent by expatriates in the same month of the previous year.
Inflows from the United Arab Emirates (UAE) registered a significant decline of 31% as they decreased from $455.9 million in July 2022 to $315.1 million in July 2023.
Remittances from the United Kingdom amounted to $305.7 million during the month, a decline of 25% compared to $408.6 million in June 2022.
Moreover, remittances from the European Union decreased 4% as they amounted to $283.6 million in July 2023. Overseas Pakistanis in the US sent $238.1 million in July 2023, registering a year-on-year decline of 4%.